Sullivan writes: "President Trump will sign an executive order on Thursday morning aimed at taking action on health care after Congress's failure to repeal ObamaCare."
President Donald Trump. (photo: Getty)
12 October 17
resident Trump will sign an executive order on Thursday morning aimed at taking action on health care after Congress's failure to repeal ObamaCare.
The order will ease rules on small businesses banding together to buy health insurance, through what are known as association health plans, and lift Obama administration limits on short-term health insurance plans, according to a source on a call with administration officials Wednesday night.
The order will direct the Department of Labor to "modernize" rules to allow small employers to create association health plans, the source said. Small businesses will be able to band together if they are within the same state, in the same "line of business," or are in the same trade association.
It does not appear that the order will go as far as some Democrats feared, though. Democrats are worried that the order will undermine the stability of ObamaCare markets because healthy people will be attracted to the cheaper, new association health plans, which do not have the same protections, leaving only sicker people remaining in ObamaCare plans.
However, it does not seem that individuals will be eligible to join the association health plans, which would be a more sweeping move. The source said administration officials did not mention individuals joining the association health plans, only referring to small businesses being able to join.
That would steer the changes clear of disrupting the individual market, which is the core of ObamaCare.
The order will lift Obama administration limits on short-term health insurance plans, allowing the plans to last as long as 12 months and be renewed. The change to short-term health insurance could damage the stability of ObamaCare.
The fear from Democrats is that healthier people will migrate to cheaper, short-term plans, leaving only sicker people in ObamaCare plans and driving up premiums.
The source said the new rules for short-term plans are where administration officials think the order will have the "most immediate impact."
The order will also allow people to use tax-advantaged accounts known as Health Reimbursement Accounts to pay for their premiums.
Sen. Rand Paul (R-Ky.) has been pushing for this order for months, arguing that allowing small businesses to band together to buy insurance gives them leverage to lower premiums. Paul is expected to be in attendance at the unveiling at the White House on Thursday.
